I don't understand. I read about half of the article and it doesn't explain how that works.
I mean money has to come from somewhere, I assume the tens of millions of credit card holders. But credit card holders do their usual spending, and in fact save between 1% and 3% on their monthly bills instead of paying more.
Unless.
- They increase their air travel frequency.
- They get addicted to collecting airline miles, because it gives them the feeling of free air travel.
- And as a result they increase their average spending (so no longer the 'usual' spending), and buy useless stuff, just so they can collect more and more miles.
Is that the real story or something more/different?
I mean money has to come from somewhere, I assume the tens of millions of credit card holders. But credit card holders do their usual spending, and in fact save between 1% and 3% on their monthly bills instead of paying more.
Unless.
- They increase their air travel frequency.
- They get addicted to collecting airline miles, because it gives them the feeling of free air travel.
- And as a result they increase their average spending (so no longer the 'usual' spending), and buy useless stuff, just so they can collect more and more miles.
Is that the real story or something more/different?